OLD Mutual Zimbabwe plans to increase investments in key sectors such as energy, agriculture and mining, as the group is upbeat about the country’s economic growth prospects.
The country’s energy supply situation, which has been affecting both domestic users and industry, is forecast to improve in the medium to the long term, following successful commissioning of Unit 7 at Hwange, as well as improved water levels at Kariba Dam.
In a presentation of the company’s 2022 financials, Old Mutual Zimbabwe group chief executive officer Mr Samuel Matsekete said the group has been channelling significant investments into the energy sector.
“We have done one in Gwanda and we are scaling up a project close to Harare from 2,5MW (megawatt) to 25MW.
“We are investing in a hydro project in Masvingo and we will continue with that thrust into the future, supporting existing and upcoming power projects,” he said.
Old Mutual has invested US$9,5 million in solar and hydro-energy projects that include the Great Zimbabwe Hydro, Kupinga Renewable Energy, Solgas Energy’s 5MW solar plant, Richaw and Centragrid.
“With the projects we have launched and some that are underway, by the time we complete them, we would be producing 42MW in energy, generating 370 jobs and providing power to 40 000 homes,” added Mr Matsekete.
The National Development Strategy 1 — an economic blueprint that will guide the country’s economy in the five-year period to 2025 — considers energy as a key enabler to the acceleration of the country’s modernisation and industrialisation agenda.
Government is presently undertaking several electricity generation projects.
Mr Matsekete said the company’s lending and investment activities continued to grow, anchored by customers in key sub-sectors of the economy.
He also said 39 percent of their total loan book went into agriculture.
“Beneficiaries include players in primary and secondary sub-sectors, with continued support for grain production for local food production, agri exporters in horticulture, cotton and tobacco,” he said.
Old Mutual is also looking at opportunities in the mining value chain, with 4,5 percent of the loan book going to the mining sector.
“Most major mines have their sources of financing such as offshore funds and export receipts, but we are encouraged with the growth that we have achieved in terms of exposure to that sector.”
Significant amounts, he added, were also deployed to support manufacturing and distribution businesses.
The support initiatives were through lending and investment activities impacting foreign currency generation, import substitution and food security.
“From an asset management perspective, we have made infrastructure investments through real estate, supporting working capital.”
The group remains optimistic about the medium and long-term outlook, said Mr Matsekete.
“There are promising green shoots in the primary agriculture sector, wheat yields, favourable rainfall patterns, horticulture and other agro exports.
“The mining sector will benefit from good commodity prices and continued investments in existing mines and infrastructure development.”
Old Mutual continues to mobilise lines of credit to support players in various economic sectors. – Sunday Mail
